Alloy Surcharge
Information
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Dear valued customer:
As you may be aware most foundries use alloy surcharges to avoid having to re- quote parts they produce every time the price of
the metal fluctuates, and to allow long term orders to be established without suffering the overhead cost of changing orders when
the alloy price changes. Sure Cast has been using this system for many years. It is noted on all the quotes we submit. In using
alloy surcharges, the foundry quotes a part with a base alloy cost from a time frame when the material costs were stable, or from
a recent time frame, if pricing has not been stable in an extended period of time. When a RFQ is received the foundry will quote
the part using that base material cost, when they receive an order it will be processed according to the quote. At the time of
invoice the difference between the quoted alloy cost and the actual alloy cost is calculated and added to the invoice as a separate
line item.
In an effort to ensure our quoted pricing is as close to the actual invoice cost as possible, Sure Cast will be changing its base alloy
prices to reflect a current alloy cost. This will be effective January 1st, 2020.
All new orders processed after 1/1/2020 will be re-quoted to reflect the new base material cost. Existing orders or orders
processed prior to 12/31/2019 will be processed as they have been in the past.
Orders that were processed prior to 12/31/2019 will still have the old base material cost and thus the surcharge will be billed
based on the alloy surcharge list noted “FOR ORDERS PROCESSED PRIOR TO 12/31/2019”
Orders that are processed after 1/1/2020 will have the new base material cost and thus the surcharge will be billed based on the
alloy surcharge list noted “FOR ORDERS PROCESSED AFTER 1/1/2020”
We appreciate your patience with the transition from the old base alloy cost to the current alloy costs. We feel this change will
best serve our customers by ensuring the quoted price of the part is as close to the actual invoice price as possible. If you have
any questions or require further information, please feel free to contact me at your convenience.
Sincerely,
Craig Sanders
Customer Service Manager